Monday, 13 August 2018

Ghana’s economic growth minus fossil fuels

-
August 13, 2018

Adnan
Adams Mohammed

The past
three centuries of progress have been powered by coal, oil and gas
(collectively termed as fossil fuel).

It is widely and undoubtedly acclaimed
that, fossil fuel consumption is inevitable in both obvious and subtle ways.
The widespread uses of these resources have immensely improved living
conditions across the globe. From the use of electricity, the vehicles we
operate and most of the goods consumed, fossil fuels are arguably the spine of
modern society because the productive and meaningful lives we are accustomed to
would simply be impossible without fossil fuels.

Fossil fuels provide substantial economic benefits. These same fuels also
represent the economic mainstay of resource-rich countries and the world’s
largest firms.

It is arguable that, any steps humanity
takes to reduce climate-warming emissions will damage commercial opportunities.
Relief for the climate means danger for the fossil fuel business.

Rising concerns against fossil
fuel use

However,
in past and recent decades, a
series of concerns have been raised about the environmental cost of fossil fuel
use. It is alluded that, burning much of what is left will lead to
environmental and economic catastrophe.

The
United Nations Industrial Development Organization (UNIDO) at its 2017 Conference
revealed that, indoor air pollution because of the use of fossil fuel caused 2
million death in 2016, and 4 million as at October, 2017, this figure is four
times the number that dies from malaria. 85% of the 4 million are women and
children. This is worse than malaria and HIV/AIDS combined.

Therefore
we are compelled to come out with alternatives and policies on how to save the
earth without giving up on growth.

Policies
aimed at controlling and reducing emissions by fossil-fuel users are driving a
wedge between consumers and producers, while investor confidence in renewables
continues to grow.

This
combination means that, although the age of cheap oil production may not yet be
over, the age of cheap oil use is coming to an end.

Also, the International Energy Agency
(IEA) Director, Fatih Birol asserted that, two-thirds of fossil fuel reserves
should not be depleted to ensure the prevention of average global temperatures
rising by more than 2°C.

Most developed countries, like the United States, have enacted Acts that
address the dangers of fossil fuels combustion. Notably, the United States
Clean Air Act of 1970 and 1977 addresses the potential effects of airborne
conventional pollutants and further imposes regulations and standards to reduce
greenhouse gas emissions.

Governments around the world have imposed myriad restrictions on the
consumption of fossil fuel. For example, British Columbia’s relatively
longstanding carbon tax is credited with a 13% reduction in per capita
emissions between 2008 and 2013. United States former President, Barack Obama
pledged to reduce CO2 emissions by 26% to 28% below 2005 level by 2025. Yet, in
many of the world’s largest and developing economies, fossil fuel consumption
is still exacting heavy toll on human health.

Ghana
situation

Contrary to this, in Ghana currently,
there are few policy responses aimed at limiting the consumption of fossil
fuel. Aside being a large consumer of fossil fuels, it is also a fossil fuel
producing nation. The Energy Minister, Boakye Agyarko recently related that,
the current Akuffo Addo led administration’s policy for the upstream oil
industry was to undertake aggressive exploration by incorporating and
attracting the right partners to conduct operations to serve as a catalyst for
economic growth.

The minister said, Ghana still has a large
and relatively unexplored sedimentary basin with huge oil and gas potential.
Out of the total offshore area of about 256,000 square km, only 30 percent is
licensed for exploration.

Ghana joined the Oil Producing Nations in
2010 when it experienced its first commercial oil production from the Jubilee
Oilfield. Currently there are 17 active exploration and production agreements
signed between the Government of Ghana and other international and local oil
firms to explore petroleum resources.

This seems a threat to the efforts towards
cutting down the reliance on fossil fuel to power the world economy.

The question here is: are we consuming
fossil fuels because of their economic benefits? Are we employing strategic
measures to minimize fossil fuel consumption? Are we ignorant about the
economic benefit of going 100% renewable?

Global
Agenda

The goal seven (7) of the Sustainable
Development Goals (SDGs) talked about Affordable and clean energy. It
stipulates that, “ensure access to affordable, reliable, sustainable and modern
energy for all.”

Between 1990 and 2010, the number of
people with access to electricity has increased by 1.7 billion, and as the
global population continues to rise, so will the demand for cheap energy. A
global economy reliant on fossil fuels and the increase of greenhouse gas
emissions is creating drastic changes to the climate system. This is having a
visible impact on every continent.

However, there has been a new drive to encourage alternative energy sources,
and in 2011 renewable energy accounted for more than 20 percent of global power
generated. Still one in five people lack access to electricity, and as the
demand continues to rise there is the need to be a substantial increase in the
production of renewable energy across the world.

Ensuring universal access to affordable electricity by 2030 means investing in
clean energy sources such as solar, wind and thermal. Adopting cost-effective
standards for a wider range of technologies could also reduce the global
electricity consumption by buildings and industry by 14 percent. This means
avoiding roughly 1,300 mid-size power plants. Expanding infrastructure and
upgrading technology to provide clean energy sources in all developing countries
is a crucial goal that can both encourage growth and help the environment.

Sustainable energy is one of 17 Global Goals that make up the 2030 Agenda for
Sustainable Development. An integrated approach is crucial for progress across
the multiple goals.

With the numerous potential benefit of
going 100% renewable, this article presents four (4) main potential benefits of
renewable energy consumption.

Consistent
and sustained energy supply

The problem of energy shortage has
affected the country for decades. Shorts in energy supply from existing
traditional sources such as oil and hydroelectricity have pushed the designated
authorities to adopt power-rationing strategies. The un-sustainability and
inconsistency in energy supply has led to the unstable power syndrome,
christened in Ghana as ‘dumsor’. In order to increase productivity, supply from
sustainable sources is key.

Renewable resources such as sunlight are in abundant supply and probably will
never deplete or run out. Thus, renewable energy can serve Ghana as its
sustainable and consistent source of energy and save it from the problem of
shortages which routinely affect the nation.

Clean and healthy environment

The use
of fossils fuels for energy emits greenhouse gases through combustion, and
causes a number of health problems for humans, food, and the general
environment. Studies by various scholars, based on their results, all conclude
that renewable sources of energy are environmentally friendly. Relative to
fossil fuels, renewable sources of energy have low or zero carbon and
greenhouse gas emissions. Key inputs for renewable sources of energy including
biomass, sunlight, water and wind generate zero harmful pollutants in the
environment. The waste and harmful by-products from using existing fossil
fuel-sources would be completely eradicated if Ghana gradually switched to
renewables.

Reports
from extant literature show that a solar-hydrogen system produces zero (0)
carbon dioxide (CO2), 0 carbon monoxide (CO), 0 sulphur dioxide (SO2), 0.10
oxides of nitrogen (NOx), 0 hydrocarbons (HC) and 0 particulate matter (PM).
Thus, environmental-related issues such as premature death of humans, loss of
livestock and wildlife, reduction in crop yield due to acid-rain, loss of fish
population, air pollution and sea level rise would be minimised massively
should the country switch to hundred percent renewables.

Spurring economic growth

Numerous
factors such as fossil fuel production and trade, deployment of renewable
energy etc. influences GDP growth. A large share of GDP growth is driven by the
increased investments needed to deploy the high capital needs of renewables.
Compared with most investment options, the capital-intensive nature of
deploying renewable energy technologies triggers GDP growth.

More
specifically, the total cost of a renewable energy plant is an upfront
investment on physical assets as against fossil fuel expenditure throughout the
lifecycle of the plant. Surges in energy demand correspond to proportionate
investments in energy infrastructure. To ensure free-flow of sustainable energy
systems and to realise potential benefits on investments, energy sector
investments need to be directed toward renewable energy systems. Investment in
renewable energy across all sectors needs to be scaled up substantially.

Jobs creation

Globally,
the energy sector has played the dual role of fueling economy-wide development
and supporting a large number of jobs. Growth of the renewable energy sector
over the past decade and its impact on job-creation has been a silver-lining
for employment in the energy sector. Employment trends vary widely across
renewable energy technologies.

For
example, Solar PV is solidifying as the largest employer in renewable energy,
due to the ever-increasing global production as lower cost connotes accelerated
growth installation. Furthermore, distribution of solar PV offers numerous
feasible and affordable ways in improving access to energy. Here again, solar
panels distribution, assembly and provision of after-sales service contribute
to creating jobs in an economy.

As jobs
in renewable energy expand, the ability to gather sound information on status
and trends of employment will enable informed policy choices and measures. More
specifically, data insights and analyses are crucial to monitoring policy
effectiveness.Recognising the pressing
need for going 100% renewable, it is appropriate to explore various aspects of
renewable energy jobs within the context of a wider green energy sector.

Though
Ghana is not a major greenhouse gas emitter – in order to fulfill energy demand
by the populace – gradually substituting fossils for renewables would be
beneficial. The energy-related greenhouse gases would be eliminated, the
galloping prices would be halted, energy supply would be consistent, and the
environment would be clean and healthy for human, animal and plant survival.